By Markus Heitkoetter
￼Yesterday the S&P and DOW smacked right into their 200-day moving average and reversed.
Today the S&P and DOW flirted with this resistance level in the morning, then broke through their 200-day moving averages with flying colors.
And just like that, we’re back to talking about all-time highs.
Today’s rally got a boost in the afternoon after October’s FOMC Meeting Minutes were released. The minutes showed that the FOMC is still planning to raise rates in December, aside from any significant economic changes of course.
The weird thing is that higher interest rates are usually bad news for the markets, but it seems that market participants are happy that the uncertainty about interest rate hikes is finally over. And whenever there’s more certainty, the markets move higher.
Closing near highs of the day, the S&P finished with a 1.6% gain. Up 33 points, the S&P ended at 2083.58. Today’s move puts the S&P back into positive territory for the year, up 1.2% YTD.
The DOW ended 1.4% higher. Adding 248 points, the DOW closed the day at 17737.16.
The NASDAQ led the indices with a 1.8% gain. Finishing 89 points higher, the NASDAQ closed at 5075.20.
How big was today’s move? If we can keep this up, the S&P is on track to have its best week in over a month. And one of the best weeks of the year!
Looking at commodities, metals have had a rough time battling a strong U.S. dollar over the last few weeks. And you can add Copper (HG) to the list of the dollar’s victims. Copper finished another 0.5% lower today, and is now trading at 6-year lows (down 25% this year).
Tomorrow the economic calendar brings us Unemployment Claims at 8:30am ET, and Philly Fed Manufacturing Index at 10:00am ET. In the afternoon, FOMC Member Lockhart will speak at 12:30pm ET, and FOMC Member Fischer will speak at 4:45pm ET.